$30-32 a barrels break even at 300bblsa day production!
PQE : TSX
PQEFF : OTC
Petroteq Reaches New Production Milestone of 300 bbls/day and is Now Operating on a Break Even Basis at Its Asphalt Ridge Plant
Must be one of the only Project in North America to break even at these oil prices after Russia and Saudi Arabia price war, plus the staff at the site is already trained ready from Double shift operations where the output from the plant at Asphalt Rigde will most likely double to over 600 barrels a day which would be turning a good profit, unheard of really in this price environment!
• The technology at the Plant is flexible enough that it can produce a wide range of different characteristics of oils, which enables the Company to cater to the specific needs of its customers.
• Due to the high quality of oil produced at the Plant, the Company’s sweet heavy oil is being sold at West Texas intermediate (WTI), less the cost of transportation with no further deductions.
• Based on the Company’s current production rate of 300 bbls/day and production costs of approximately $30- $32 per barrel (inclusive of the costs of all plant expenses), the Plant is currently operating on a break even basis.?
• The Company has received a payment of $96,500 from the State of Utah County Roads Department for delivery of heavy unrefined oil to be used in their road paving operations. In addition, the Plant has received an additional purchase order for ?a further $250,000 of the same product from the same state agency.
• Additional staff training has been completed at the Plant in anticipation of implementing dual shift operations as a result of anticipated increased ?production resulting from various engineering improvements at the Plant.
• With the International Maritime Organization’s new low sulfur fuel regulations (IMO 2020) becoming effective on January 1, 2020, the Company is focusing on producing a high ?quality sweet heavy crude oil consistent with refiner and customer demand. Petroteq Heavy Sweet Oil has an American Petroleum Institute (API) gravity in the range of 14 to 20 and a sulfur ?content of less than 0.5%?.
• The Company believes that the low sulfur content of Petroteq’s Heavy Sweet Oil, provides it the potential to reduce refining costs and is an attractive blend component for refiners, which generates a more valuable product for the Company, increasing our ?net margins and netbacks on a per barrel basis.